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Economy Hits Hard on Black Campuses

ATLANTA — On Tuesday, Morris Brown College, one of a cluster of historically black institutions here, narrowly averted having its water shut off for the second time this school year by paying $150,000 toward an outstanding bill of more than $200,000.

But the college is not yet in the clear financially: It is down to 151 students and is $30 million in debt.

Morris Brown’s problems stem largely from financial mismanagement that led in 2003 to a loss of accreditation for the college, which once had 2,600 students. But its ability to right itself has been hampered by an economy that has had disproportionately severe effects on historically black colleges and universities.

Clark Atlanta University, citing an “enrollment emergency,” laid off 70 faculty and 30 staff members this month and canceled physical education classes. Spelman, an Atlanta college for women that is among the wealthiest and most prestigious historically black colleges, has eliminated 35 staff positions to compensate for a projected $4.8 million deficit next year after a decline in its enrollment.

Stillman College in Tuscaloosa, Ala., announced campuswide salary reductions and a furlough program, among other cuts, last week. Tennessee State University in Nashville, where enrollment is down 10 percent from last year, has eliminated 52 positions and is considering a reduction in scholarship money.

Colleges and universities of all kinds across the country are facing shrunken endowments, decreased giving and government cutbacks, and many have reduced their payroll and list of classes. But historically black institutions have two significant disadvantages when it comes to weathering hard times: smaller endowments, which mean heavier reliance on tuition and fees, and a higher proportion of disadvantaged students who are now facing a credit crunch when they apply for loans.

“At some institutions, you might be going from eating brie to cheddar, while at H.B.C.U.’s, you might not have any cheese left,” said Marybeth Gasman, an expert on historically black colleges and universities, often shortened to H.B.C.U.’s, at the University of Pennsylvania.

At Clark Atlanta, 98 percent of the students qualify for financial aid, much higher than the national average of about 70 percent. At Spelman and its brother college for men, Morehouse, also in Atlanta, about 40 percent of students are eligible for federal Pell Grants, which typically go to students whose family income is less than $40,000 a year.

Nationally, fewer than 30 percent of students at four-year institutions receive Pell Grants, according to the most recent statistics from the National Center for Education Statistics. Among historically black institutions, Spelman and Morehouse are on the low end for Pell Grants, said Michael L. Lomax, the chief executive of the United Negro College Fund. Some student bodies are more than 90 percent eligible, he said.

Many students are the first in their families to go to college, and higher education is a luxury for them, said Cynthia Brooks, the vice president for business and finance at Tennessee State University. “With the economy the way it is, people are weighing every financial decision, including education,” Ms. Brooks said.

Historically black colleges and universities have a proud lineage. Most of them are in the South and many, like Morris Brown, which was founded in a church basement by former slaves, date to Reconstruction. But many lack a robust tradition of giving, in part because many have only recently begun methodically cultivating students to become donors. Still, the institutions can command deep loyalty.

On Tuesday, Morris Brown raised $90,000 in six hours to help pay the water bill, said Stanley Pritchett Sr., the interim president.

Though the number of black students who choose to go to primarily black institutions has slowly declined over the last few decades, the institutions’ defenders say they provide environments in which black students who might otherwise have trouble graduating can flourish.

Fewer than 12 percent of all black college students today choose to attend historically black colleges, yet those institutions grant almost 20 percent of the bachelor’s degrees earned by black students. According to the United Negro College Fund, black colleges have produced 70 percent of all black doctors and dentists and 50 percent of black engineers.

But resources for those students are shrinking, Mr. Lomax said. The amount the United Negro College Fund has collected for scholarships was down 10 percent in 2008, Mr. Lomax said, while the number of applications rose by 26 percent. Smaller donations could mean less support for the fund’s 39 member colleges, which typically receive an average of $1 million each in operating support annually.

In a recession, the demand for education can rise as people decide to go back to school to increase their chances of employment or bide their time. “I was at Morehouse last week and was talking to their admissions people, and applications are up,” Mr. Lomax said. “But at the end of the day, those students also have to have the financial resources to enroll.”

Howard University in Washington, whose endowment of $400 million makes it the wealthiest historically black college, has not yet had to make serious cutbacks, but its leaders have decided to allocate more money to scholarships, said Sidney Evans, the chief financial officer. Spelman has started an emergency fund to ensure students do not have to drop out because they cannot pay their bills.

Beverly D. Tatum, Spelman’s president, said she was focusing first on juniors and seniors who had already invested years, and thousands of dollars, in their education. “To come and have debt and no degree,” Dr. Tatum said, “seems like a worst-case scenario.”

Correction: February 26, 2009

An article on Thursday about the toll of the poor economy on traditionally black colleges referred incorrectly to the financial condition of Spelman College in Atlanta. The college has eliminated 35 staff positions to compensate for a projected $4.8 million deficit. It is not projecting the deficit after the positions are eliminated.